The Underlying Causes of Brazilian Corruption

Abstract

Brazilian institutions have mechanisms that contribute to and incentivize public corruption behavior; their performance affects economic activities in the country. These mechanisms have been conditioned by cultural traits inherited from a Brazilian colonial period that was based on a deeply divided society. The inequality between slaves and landowners remains a central feature of today’s Brazil. Furthermore, Brazil tolerates corruption because of its civil law tradition and because of its strong commitment to individuality. We conclude that corruption affects economic growth and public policies and compromises Brazil’s long-run economic development.